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October 26, 2014

Result of the comprehensive bank assessment confirms conservative valuation policy and stable business model of Commerzbank

  • Commerzbank passes Asset Quality Review (AQR) and stress test of the European Central Bank
  • CET 1 ratio in accordance with transitional rules of Basel 3 and after AQR as of the end of 2013 10.8% (hurdle 8.0%)
  • CET 1 ratio in accordance with transitional rules of Basel 3 and after AQR in the adverse scenario of the stress test 8.0% (hurdle 5.5%)
  • Blessing: “The good result of the comprehensive assessment by the ECB is testimony to the successful reorganisation of Commerzbank and to the strength of our client-centric business model.”

Commerzbank has passed both the Asset Quality Review (AQR) of the European Central Bank (ECB) as well as the stress test of the European Banking Authority (EBA). According to the results in the AQR published by the ECB, the Common Equity Tier 1 ratio (CET 1) taking into account the transitional rules of Basel 3 as of 1 January 2014 is 10.8%, and thus considerably higher than the relevant hurdle of 8.0%. “The good result of the Asset Quality Review is confirmation of the conservative valuation policy and the adequate risk provisioning of the Bank, and does not lead to any change in our expected risk provisions for 2014,” said Stefan Schmittmann, Chief Risk Officer of Commerzbank.

Taking into account the AQR results, in the baseline scenario of the stress test Commerzbank has attained a Common Equity Tier 1 ratio (CET 1) of 11.4%, which is thus also considerably higher than the hurdle of 8.0%. In the so-called adverse scenario of the stress test this Common Equity Tier 1 ratio is at 8.0%, also significantly higher than the hurdle of 5.5%. Even with the full application of Basel 3 and taking into account the AQR results, the Common Equity Tier 1 ratio in the adverse scenario of the stress test is a comfortable 6.9%.

The cut-off date for the assessment by the ECB was 31 December 2013. Since then Commerzbank has further increased its profits and consistently moved ahead with the reduction of risks. The Common Equity Tier 1 ratio pursuant to the transitional rules of Basel 3 increased to 11.7% at the end of June 2014, following on from 11.4% as of the cut-off date of 31 December 2013 for the ECB assessment. With full application of Basel 3 the Common Equity Tier 1 ratio improved as of the end of June to 9.4% (cut-off date of ECB assessment: 9.0%).

“The good result of the comprehensive assessment by the ECB is testimony to the successful reorganisation of Commerzbank in the past years and to the strength of our client-centric business model. In this respect the stress test has clearly confirmed the stability and stress resilience of the bank. The strategic orientation is correct; the implementation of the measures from our agenda through to 2016 is proceeding successfully and to schedule,” said Martin Blessing, Chairman of the Board of Managing Directors of Commerzbank.

Please find further information on the publication of the ECB from October 26, 2014 at
https://www.commerzbank.de/en/hauptnavigation/aktionaere/aktuelles_2/stresstest.html.

 

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About Commerzbank
Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries comdirect and Poland’s mBank it owns two of the world’s most innovative online banks. With approximately 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts approximately 15 million private customers, as well as 1 million business and corporate clients. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2013, it generated gross revenues of more than EUR 9 billion with an average of approximately 54,000 employees.

 

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Disclaimer
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts. In this release, these statements concern inter alia the expected future business of Commerzbank, efficiency gains and expected synergies, expected growth prospects and other opportunities for an increase in value of Commerzbank as well as expected future financial results, restructuring costs and other financial developments and information. These forward-looking statements are based on the management’s current plans, expectations, estimates and projections. They are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. Such factors include the conditions in the financial markets in Germany, in Poland, elsewhere in Europe and other regions from which Commerzbank derives a substantial portion of its revenues and in which Commerzbank holds a substantial portion of its assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its NCA portfolio, the reliability of its risk management policies, procedures and methods, risks arising as a result of regulatory change and other risks. Forward-looking statements therefore speak only as of the date they are made. Commerzbank has no obligation to update or release any revisions to the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.

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